The country’s biggest printer PMP says earnings for the first half of this year are now expected to be $20.2m, $3-4m below prior expectations, citing a drop in magazines and newspaper volumes as the cause for the downgrade.

Based on the three months trading since the previous guidance, PMP is forecasting EBITDA for the full year to be $40-45m, around $10-15m less than expected when it gave its first profits downgrade November, which itself was $20m less than originally forecast . Net debt at June is now expected to be $35-40m, up from the November forecast of $30-$35m.

Share price of the company dropped by a quarter on the news, and is now less than half of the November figure, at 36c, compared with 78c when the first profit forecast downgrade was given.

[Related: Shares plunge on PMP downgrade forecast]

The company says overall, Australian print volumes (catalogues, magazines and newspapers) are in line with what has previously underpinned guidance, with a drop in higher margin magazines and newspapers, but higher volumes of lower margin catalogues than expected.

All other business units within PMP are said to be performing largely in line with the company’s previous expectations. PMP says it recognises the ongoing challenges for retail, publishing and newspaper industries.

The company already downgraded its financial forecast for 2018 and 2019 in November from $70-75m and $90-100m to $50-55m and $70-80m respectively. Shares in PMP plummeted at that time from 76 cents to 50 cents, with the announcement coinciding with the sudden retirement of former CEO Peter George.

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